Hilton has announced an agreement with Adventurous Journeys Capital Partners (AJ Capital) to acquire the Graduate Hotels brand.
Graduate Hotels will be incorporated into Hilton’s growing lifestyle portfolio alongside Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton, and Motto by Hilton—all of which launched in the last 10 years in response to growing demand for localized travel experiences.
Hilton will pay $210 million to acquire all rights to the brand worldwide, enter into franchise agreements for all existing and signed pipeline hotels, and become responsible for its future development and growth. AJ Capital will remain the owner of the 35-plus operating and pipeline Graduate properties, each of which will be operated under long-term Hilton franchise agreements.
“Adding Graduate Hotels to our portfolio of award-winning brands accelerates our expansion in the lifestyle space by pairing an existing much-loved brand with the power of Hilton’s strong commercial engine to drive growth,” says Hilton president and CEO Chris Nassetta “With thousands of colleges and universities around the world, we believe the addressable market for the Graduate brand is 400–500 hotels globally.”
Since Graduate Hotels’ inception in 2014, the brand has expanded across the U.S. and the UK, boasting locations in Ann Arbor, Michigan; Knoxville, Tennessee; Palo Alto, California; State College, Pennsylvania; and Oxford and Cambridge, England. Forthcoming properties include Austin, Texas; Auburn, Alabama; and Princeton, New Jersey.
“We’re proud to embark on this new chapter for Graduate Hotels with Hilton, the ideal partner to steer the brand’s continued growth,” says AJ Capital CEO Ben Weprin. “Both Hilton and Graduate Hotels are committed to delivering exceptional experiences and making a positive impact on communities. Our shared values and close collaboration will ensure a smooth transition while keeping the Graduate Hotels’ unique brand identity intact.”
The transaction is expected to close in the second quarter of this year.
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